The Insolvency Service statistics released on 16 September 2022 show that the monthly number of registered company insolvencies in England & Wales was 43% higher than in the same month in the previous year and 42% higher than the number registered three years previously (pre-pandemic; 1,365 in August 2019).

The actual number of registered company insolvencies was 1,993 which was largely made up of 1,662 Creditors’ Voluntary Liquidations (CVLs), those being 73% higher than in August 2019. Other types of company insolvencies, such as compulsory liquidations remained lower than before the pandemic although there were almost four times as many compulsory liquidations in August 2022 compared to August 2021. The number of administrations was more than twice as high as a year ago.

In Northern Ireland, in the same period there were 14 company insolvencies, 56% higher than in August 2021. This is comprised of two compulsory liquidations, ten CVLs, one CVA and one administration. Unlike the rest of the UK, a moratorium remains in place in Northern Ireland preventing the issue of fresh creditor winding up petitions although the restriction on creditor (including HMRC) bankruptcy petitions was lifted from 5 September 2022 which will inevitably see an increase in the number of bankruptcy orders.

With insolvencies on the rise, if you are concerned about your business, its debts or future prospects now is the time to take the initiative and obtain expert advice. MKB Law’s Insolvency team is available on 028 9024 2450 to discuss your needs.